Organisational groupings

Question 1

Describe functional grouping

Answer 1

Departments are grouped based on similar skills expertise and resources used

Question 2

Describe the advantages of functional groupings

Answer 2

Organisation has a clear structure

staff expertise is contained in one department which encourafes specialisation

staff can help eachother with problems

easy to identify answers to problems and who performs particular activities

Question 3

Describe the disadvantages of functional groupings

Answer 3

Difficult structure to manage as organisation expands
slow ar responding to change
department objectives become more important than organisation strategic objectives
department rivalry
communication betweem departments is poor

Question 4

Describe place grouping

Answer 4

When an organisation organises its activties and resources by geographical location

Question 5

Describe the advantages of place groupings

Answer 5

Can meet the needs of customers in different countries exactly- in terms of language
can become familiar with local customs and cultures

Question 6

Describe the disadvantages of place groupings

Answer 6

Expensive to produce products in different languages- packaging anf ads
communication can be difficult between branches
expensive to staf- ;imguists
duplication of administration activities

Question 7

Describe customer grouping

Answer 7

When an organisation organises its activties and resources by different types of customers

Question 8

Describe the advantages of customer groupings

Answer 8

Customer loyalty due to the high personal service the receive
highly responsive to the needs of the customer
each type of customer receives its own service price and promotion suited to their needs

Question 9

Describe the disadvantages of customer groupings

Answer 9

very expensive staffing costs
if a new group of customers exist a whole new group of staff have to be employed and trained
duplication of marketing activties and admin activties

Question 10

Describe product/ service grouping

Answer 10

When the activities of the organisation are divided according to the different product and services which are produced

Question 11

Describe the advantages of produce/ service groupings

Answer 11

Increased responsiveness to change
staff become experts on the product/ service
staff can eaisly see the results of their efforts- increased motivation
allows management to identify poorly performed products/servicesDe

Question 12

Describe the disadvantages of product/service groupings

Answer 12

Competition between porducts and services
duplication of equipment administration and staffing

Question 13

Describe technolog grouping

Answer 13

Organisation group their activities according to the technological processed involved in providing the good or the service

Question 14

Describe the advantages of technological groupings

Answer 14

Highly suitable for large organisations with different production processes
specialisation within the workforce
training is given in only one area
easy to pinpoint problems in production

Question 15

Describe the disadvantages of technological groupings

Answer 15

Duplication fo resources in each production process
departments compete aginst each other
department aims more important than organisation aims